Arbitration Case
HC restrains Gensol Engg, BluSmart from alienating Orix's 175 e-vehicles
This story was originally published at 14:40 IST on 25 April 2025
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NEW DELHI – The Delhi High Court on Friday restrained Gensol Engineering Ltd. and BluSmart Mobility from alienating or creating any third party rights over 175 electric vehicles leased to them by Orix Leasing and Financial Services Ltd. The court said Orix Leasing has made out a "prima facie" case for grant of interim relief.
The court was hearing a petition filed by Orix Leasing under Section 9 of the Arbitration and Conciliation Act, 1996, against Gensol Engineering and BluSmart. Section 9 of the Act empowers Indian courts to grant interim measures of protection to parties involved in arbitration proceedings, before, during, as well as after arbitration but before the award is enforced. Orix Leasing informed the court of its intention to commence arbitration proceedings against Gensol Engineering and BluSmart. The court will now hear the case on May 16.
The case has its genesis from Orix Leasing entering into an agreement with Gensol Engineering and BluSmart to lease 175 electric vehicles to support BluSmart's growing ride-hailing operations in India. Anmol Singh Jaggi, co-founder of both Gensol Engineering and BluSmart, acted as a guarantor for the lease obligations. Orix Leasing has moved the high court alleging breach of contractual terms and default in lease payments.
Earlier this month, the Securities and Exchange Board of India said it was probing Gensol Engineering and its promoters for diverting loans taken from Power Finance Corp. Ltd. and Indian Renewable Energy Development Agency Ltd. The markets regulator also issued an interim order against the company and its two promoter-directors, Anmol Jaggi and Puneet Singh Jaggi, barring them from any securities market-related activity and from holding the post of director or any key managerial position in the company till further orders.
SEBI said it had found prima facie that a loan of INR 967 million from PFC taken by Gensol Engineering "was diverted to promoter and promoter-linked entities, bypassing the stated end-use of the PFC loan". The markets regulator also found that INR 375 million out of a total loan of INR 1.71 billion taken by Gensol Engineering's subsidiary, Gensol EV Lease, from IREDA was transferred to Anmol Jaggi. "This aspect needs further examination," it said in the interim order. BluSmart halted operations as a result, and the company could also not pay lease rentals to Gensol Engineering.
On Thursday, the Enforcement Directorate conducted searches at Gensol Engineering's premises in Delhi, Gurugram in Haryana, and Ahmedabad in Gujarat and detained Puneet Jaggi from a hotel in Delhi. The raids were conducted under provisions of the Foreign Exchange Management Act.
At 1421 IST, shares of Gensol Engineering Ltd. were down 5% at INR 90.16 on the National Stock Exchange. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Surya Tripathi
Edited by Rajeev Pai
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